Global oil prices moved higher on Friday after Iran pushed back against growing market optimism over a possible near-term agreement with the United States, reminding traders that diplomatic signals and geopolitical realities remain far apart.
Brent Crude rose 0.78%, while West Texas Intermediate gained 0.20% to reach $96.54 per barrel, reversing part of Thursday’s sharp selloff that had dragged both benchmarks to their lowest levels in nearly two weeks.
Latest Oil Prices:
WTI Crude $96.60 +0.25 +0.26%
Brent Crude $103.5 +0.96 +0.94%
Murban Crude $102.2 +0.06 +0.06%
Natural Gas $2.907 -0.111 -3.68%
Gasoline $3.454 +0.074 +2.20%
Heating Oil $3.888 +0.056 +1.47%
WTI Midland $98.35 +0.53 +0.54%
Opec Basket $113.4 -1.98 -1.72%
Indian Basket $109.3 +0.45 +0.41%
Markets had initially fallen after comments from US officials fueled hopes of progress in negotiations with Tehran and a possible easing of tensions surrounding the Strait of Hormuz. However, Iranian officials quickly dampened expectations.
According to Iran’s Foreign Ministry spokesman, Tehran could not yet say that an agreement with Washington was close, reinforcing uncertainty surrounding ongoing diplomatic contacts.
The comments followed days of mixed signals from both sides and highlighted a pattern familiar to oil traders: crude prices rally on diplomatic headlines, only to retreat once investors reassess the likelihood of a breakthrough.
Earlier, a senior Iranian source told Reuters that some negotiating gaps had narrowed, though no agreement had been reached.
Meanwhile, US Secretary of State Marco Rubio said there were “some good signs” in talks, while reiterating that any Iranian attempt to restrict navigation through Hormuz would remain unacceptable to Washington.
Six weeks into the ceasefire, traders appear increasingly reluctant to price in major diplomatic progress without concrete developments on the ground.
Analysts said oil markets continue to react sharply to geopolitical headlines but often reverse course when optimism outpaces actual negotiations.
The broader market backdrop remains supportive for higher crude prices.
Physical oil supplies are tightening, global inventories continue to decline, and elevated fuel prices are contributing to inflation pressures across major economies.
Adding to concerns, Abu Dhabi National Oil Company CEO Sultan Al Jaber warned this week that full oil flows through the Strait of Hormuz may not return before early 2027, even if hostilities were to end immediately.
The warning underscored growing fears that prolonged disruptions in one of the world’s most important energy corridors could continue reshaping global oil markets, shipping routes, and inflation trends well beyond the immediate conflict period.
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